Abstract

In this article we investigate to what extent the revenues in the mainland Portuguese water supply and wastewater drainage and treatment industry cover the operation and investment costs. The results are analysed by types of systems (retail and bulk water) and by types of water utilities. While in water supply systems we find cost recovery levels which can be regarded as satisfactory, the situation regarding sewage is clearly unsustainable, indicating the presence of cross-subsidization. The coastal urban regions show greater cost recovery ratios than the inland country, especially regarding the Northeast region where the costs are higher and revenues are lower. We find no evidence of an association between the type of water utility and its cost recovery level.

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